North Carolina Down Payment Assistance Systems

Online Merchant account - The North Carolina Housing Finance Agency got two amazing plans for first-time Home Buyers. These systems will be the Down Payment Assistance Program as well as the Mortgage Credit Certificate.

Also you buy a house between December 1, 2009 and January 1, 2009 and should you meet the requirements for one of those programs, you might also qualify for the $8,000 tax credit merely enacted into law in the Federal Economic Stimulus Plan.

First, who is a first-time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home in the past three years. That is the same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with low and average incomes. All home owners can claim an itemized deduction for mortgage interest.

You are able to claim 20% of the interest you pay on your own mortgage as a credit on your own federal income taxes, in case you are eligible for the MCC. It is possible to save around .

You may be able to join this with the $8,000 tax credit should you qualify for 2009, for the MCC. This would reduce a buyer's tax liability .

Who Qualifies for an MCC?

Who qualifies for an MCC is based in your income and also the purchase price of the house you're purchasing. Household income is defined as the “gross income of the mortgagor and any person expected to reside in the residence who is 18 years of age or older.”

House price limits that apply in Orange, Durham and Chatham Counties and the income are given below.

MCC Income Limitations 1 Man $61,500 2 Individuals $61,500 3 Men $70,500 4 Men $70,500

MCC Sales Price Limitations New House $220,000 Existing Home $210,000

The buyer only needs to pay $1,000 of their own funds and the load would pay around $8,000 of the remaining balance.

This program has stricter income limitations than the MCC plan outlined above. Like the MCC application, it may be used in conjunction with all the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The down payment help, nevertheless, can't be employed along with all the MCC. This really is an either or situation.

House price limits Durham and Chatham Counties and the income are given below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Individuals $45,650 3 Men $51,350 4 Individuals $57,050

Down Payment Assistance Sales Price Limits New Dwelling $210,000 Existing House $210,000